grampa
Placer Dome to resume construction of Las Cristinas mine
Placer Dome Inc PDG
Shares issued 250,058,657 Mar 25 close $17.40
Fri 26 Mar 99 News Release
Mr. John Willson reports
All dollar amounts are in U.S. currency.
Construction will resume immediately on the $575-million Las Cristinas gold
mine in Venezuela, with production scheduled to begin in 2001. The mine is
held by Minera Las Cristinas, C.A., a joint venture company owned 70 per
cent by Placer Dome Venezuela and 30 per cent by Corporacion Venezolana de
Guayana, a Venezuelan state company.
CVG and MINCA have now approved the financing plan for the project.
Activation of the construction camp and mobilization of personnel on site
in southeastern Venezuela will commence at once, as well as resumption of
detailed design work for plant facilities and the placing of orders for
major long-delivery plant and mobile equipment. Project loan financing is
being provided for MINCA by Placer Dome at commercial market terms through
the company's existing sources of liquidity.
The president of Venezuela, Hugo Chavez, with the minister of energy and
mines, met with the chief executives of MINCA, CVG and Placer Dome Latin
America in Caracas on March 19, and expressed support for the project. The
president of CVG, Clemente Scotto, said, "Las Cristinas is part of the
reactivation of the economic dynamics of Venezuela and proves the
confidence of foreign investors in this country."
John Willson, president and chief executive officer, said: "The development
of Las Cristinas is the next step in Placer Dome's development of a
high-quality asset portfolio to generate superior returns for our
shareholders. Las Cristinas, together with the South Africa joint venture
and the pending merger with Getchell Gold Corporation of the United States,
will take us into the next century with a secure future as a continuing
low-cost producer with very long-life reserves."
The 70 per cent-owned Las Cristinas gold project has proven and probable
reserves of 11.7 million ounces of gold, of which Placer Dome's share is
8.2 million ounces, and a mine life of approximately 20 years. It is
expected to produce an annual average of 530,000 ounces of gold during the
first 10 years at an average cash production cost to Placer Dome of $155 an
ounce and a total cost of $240 an ounce.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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